Vodacom slips amid Ethiopia hit, but it’s pleased about SA

Vodacom CEO Shameel Joosub.

SA’s biggest mobile operator Vodacom reported on Monday its acquisition of Vodafone Egypt, the largest acquisition in its history, helped lift revenue over a third to about R73 billion in its half-year to end-September.

Excluding this, group service revenue grew 7.9%, the group reported, while headline earnings per share declined 4.2%, largely attributable to a start-up loss in Ethiopia, higher interest rates, as well as the effects of a deferred tax asset recognised in Tanzania in the prior year.

The group cut its dividend just over a tenth to 305c per share, about a R6.34 billion payout for a group valued at about R213 billion on the JSE. In late morning trade, Vodacom’s shares slipped 5% and have fallen by almost 16% in the last year.